Follow us on Google News
Uncovering a large-scale network involved in organised financial fraud and money laundering under the guise of cryptocurrency-based investment schemes, the Directorate of Enforcement (ED), Bengaluru Zonal Office, conducted simultaneous search operations at 21 premises spread across Karnataka, Maharashtra and Delhi on December 18, 2025.
The searches were carried out under the provisions of the Prevention of Money-Laundering Act (PMLA), 2002 in connection with the case involving M/s 4th Bloc Consultants and other associated persons.
According to the ED, the searches were conducted at residential and office premises of the accused persons and their associates. The action followed a preliminary investigation initiated on the basis of an FIR registered by the Karnataka State Police and intelligence inputs shared with the agency, alleging a large-scale, organised crypto investment fraud targeting both Indian citizens and foreign nationals.
https://the420.in/fcrf-certified-grc-professional-program-governance-risk-compliance-training-india/
Web of Fraud through Fake Investment Platforms
The Enforcement Directorate stated that the preliminary investigation revealed that the accused had created fake cryptocurrency investment platforms designed to closely resemble legitimate and reputed international investment websites. These platforms were used to lure investors by promising astronomical and unrealistic returns on crypto investments.
According to the agency, the websites were carefully designed to replicate the user interface, dashboards and transaction mechanisms of genuine crypto platforms, thereby reducing suspicion and misleading investors into believing that their funds were being legitimately invested.
Investors Targeted in India and Abroad
The ED said that the accused network targeted not only investors in India but also foreign nationals, expanding the scale of the fraud across borders. Aggressive digital marketing and social media campaigns were used to attract investors quickly.
Investigators found that the accused persons had unauthorisedly used photographs and names of reputed crypto experts and well-known personalities to promote their fake platforms, falsely projecting credibility and trustworthiness.
Operations Mirroring an MLM Scheme
Evidence gathered during the searches indicates that the fraud was structured along the lines of a classic Multi-Level Marketing (MLM) model. Early investors were paid partial or token returns initially to build confidence, encouraging them to invest larger amounts and recruit additional participants.
The ED noted that investors were also offered referral bonuses, and social media platforms such as Facebook, Instagram, WhatsApp and Telegram were extensively used to market the schemes and rapidly expand the network.
Crypto Wallets, Foreign Accounts and Shell Entities
The investigation further revealed that the accused had created multiple cryptocurrency wallets, undisclosed foreign bank accounts, and foreign shell companies to collect, layer and conceal the Proceeds of Crime (POC).
According to the ED, funds generated through the fraud were brought into India using hawala channels, accommodation entries, and peer-to-peer (P2P) crypto transfers. In several instances, cryptocurrencies were converted into cash or bank balances using international crypto platforms to obscure the money trail.
Network Active Since 2015
The Enforcement Directorate stated that the fraudulent network had been operational since 2015. In the initial years, the proceeds of crime were largely utilised directly through crypto transactions. In later stages, the illicit funds were converted into cash, bank balances and assets.
Investigations have revealed that the accused used the proceeds of crime to acquire movable and immovable properties in India and abroad. Some of these properties have already been identified during the search proceedings.
Identification of Crypto Wallets and Foreign Accounts
During the searches, the ED identified several crypto wallet addresses linked to the accused persons, which were used to receive and further utilise the proceeds of crime. It was also revealed that most of the accused were maintaining undisclosed foreign bank accounts and overseas entities to launder illicit funds.
ED officials stated that digital forensic analysis of these wallets and accounts is currently underway to reconstruct the complete money trail and identify beneficiaries.
Websites Used to Execute the Fraud
The ED has identified multiple websites allegedly created and operated by the accused to execute the fraudulent schemes. These include:
- goldbooker.com
- fincorp.com
- wozur.com
- mygoldrev.com
- cryptexify.com
- hawkchain.com
- paymara.com
- hackandpool.com
- growmore.com
- bitrobix.com
- primetrades.com
- zylotrade.com
- cryptogames24hrs.com
- theapexpower.com
- cryptobrite.com
- goldxcapital.com
- cubigains.com
- bitcodeals.com
- turbominers.com
- bitminerclub.com
- cryptobtctrade.com
- hydrominers.com
- bitleeds.com
- jumboticket.network
- bixotrade.org
- metaaibox.com
According to the agency, these websites were launched at different points in time to evade detection and continuously attract new investors.
Further Probe into Money Laundering Network
The Enforcement Directorate clarified that the present action is at a preliminary stage and that further investigation is in progress. The agency is now working in coordination with international counterparts, foreign regulatory bodies, and cryptocurrency exchange platforms to expose the entire network.
Officials indicated that additional searches, attachment of properties and arrests may follow as the investigation progresses.
Warning for Investors
Legal and financial experts said the case once again highlights the risks associated with crypto schemes promising unusually high or guaranteed returns, which are often indicative of fraud. Investigative agencies have advised investors to conduct thorough due diligence, including verification of platform legitimacy, regulatory compliance and risk disclosures, before investing in digital assets.
